Key steps to trade during the Tokyo trading session

Professional traders always take their trades based on different sessions. They know the importance of timing during the trade execution process. On the contrary, the rookie traders are taking random trades without knowing the impact of trade timing. Eventually, they keep on losing money most of the time. As a new Japanese trader, you should think twice before you develop your trading system. Unless you consider the Tokyo session factor, you are not going to do well in the stock trading profession.

In this article, we will share some valuable insights that will help you to optimize your trading environment during the Tokyo session. Go through this article very carefully as we will unveil some top secrets.

Time to analyze the chart

You should not be analyzing the chart right after the market opens in the Tokyo session. Instead, you should be analyzing the data in the daily time frame right before the market opens. By doing so, you will get the unique chance to find the potential trading zone. Thus you will be well prepared about the critical states of the market and taking your trades will become much easier. But some rookie traders often think that they can analyze the real-time market data and take their trades in a very structured way. But this is not how this trading industry works. You need to have a strong plan and only then you can expect to find the best possible trade signals.

Learn candlestick pattern trading

To become good at trading the Tokyo session, you must learn to analyze the candlestick patterns. Most professional traders at Saxo Bank have in-depth knowledge about the candlestick pattern trading technique and thus they can execute quality trades at the key support and resistance level. By learning to analyze the candlestick patterns, you will also learn to execute the trades in a lower time frame. But remember, lower time frame trading is a bit tricky and you might have to learn about the multiple time frame analysis. Learning about multiple time frame analysis is not that tough but you might mess things up. That’s why you should learn these things in the demo account as it will minimize your risk exposure.

Learn chart pattern trading

People who trade during the Tokyo session are excellent in chart pattern trading. Chart pattern trading method provides the best possible way to make a big profit in the market. As a new trader, you might think knowing about the chart pattern trading technique will not add any value. But once you learn about the major continuation pattern, you should be able to take the trades with a high level of precision. But do not expect that you will keep on winning just because you are good at chart pattern trading strategy. You have to train yourself properly and manage the risk factors in a very efficient way.

Reduce your risk factor

You should always trade the market with very low-risk exposure. Without strategically managing the risk, you will never learn to execute the trades with a high level of precision. The elite traders usually keep the risk factor below 1% of their account balance. By doing so, they create a safe path for their trading profession and make significant progress. On the contrary, the rookies take the trades in a very aggressive way and expect to make a big profit without doing the proper risk factor analysis. Eventually, they lose a big portion of the capital during the Tokyo trading session.

Be a confident trader

You must have strong confidence in your stock trading strategies. People who suffer from a lack of confidence usually mess things up and fail to do the proper data analysis in a structured way. Thus they lose money most of the time. So, learn to trade this market confidently and accept few losing trades with big a smile.

 

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